Abstract
The paper examines the legal, ethical, and public policy issues involved in the Union Carbide gas leak in India which caused the deaths of over 3000 people and injury to thousands of people. The paper begins with a historical perspective on the operating environment in Bhopal, the events surrounding the accident, then discusses an international situation audit examining internal strengths and weaknesses, and external opportunities and threats faced by Union Carbide at the time of the accident. There is a discussion of management of the various interests involved in international public relations and ethical issues. A review of the financial ratio analysis of the company prior and subsequent to the accident follows, then an examination of the second tragedy of Bhopal — the tragic failure of the international legal system to adequately and timely compensate victims of the accident.
The paper concludes with recommendations towards public policy, as well as a call for congressional action regarding international safety of U.S. based multinational operations.
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Clayton Trotter is a graduate of the University of Texas School of Law and College of Business Administration. Currently, he teaches in both the College of Business and the School of Law at Texas Tech University; and was formerly Associate Professor of Law at the Coburn School of Law in Virginia Beach, Virginia. He has taught courses in Real Estate Law, Corporations, International Business Transations, and Business Law.
Mr. Trotter has been attorney of record in a number of contested civil cases and has appeared in the Fifth and Seventh United States Circuit Court of Appeals on such cases. He is licensed in Texas, Florida and the Supreme Court of the United States.
He has authored a number of articles on business related legal matters.
Susan G. Day is a Texas Real Estate Broker, Escrow Agent, and Insurance Agent. She graduated from Texas Tech University with a major in Business Administration with an emphasis on Management. She currently attends Texas Tech University pursuing a graduate degree in Education.
Susan is Past President of the Toastmasters International group at Texas Tech University giving speeches and lectures on real estate and law. In addition, Susan is a member of the following associations at Texas Tech University: Society for Advancement of Management, Marketing Association, Tech Management Association, Lubbock Legal Secretaries Association, National Association for Female Executives and the Ex-Students Association.
Amy E. Love graduated Magna Cum Laude in December, 1988 with a Bachelor of Business Administration degree in Management from Texas Tech University. Her long range goals include graduate school where she would like to emphasize finance. Amy is a member of the Society for Advancement of Management, Golden Key National Honor Society, Gamma Sigma Honor Society, and Phi Beta Kappa Honor Society.
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Trotter, R.C., Day, S.G. & Love, A.E. Bhopal, India and Union Carbide: The second tragedy. J Bus Ethics 8, 439–454 (1989). https://doi.org/10.1007/BF00381810
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DOI: https://doi.org/10.1007/BF00381810